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Porters Diamond framework - Essay Example

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Porters Diamond framework

The porter diamond factors of competitive advantages of a nation include; the government, factor conditions, port competition, related and supporting industry as well as the demand conditions that should be applied in all organizations so as to have high competitive advantages over their competitors.
However, the framework may not be applied in most organization as it does not incorporate the multinational activities. The introduction of the generalized double diamond model has led to the significant changes within the organization. This framework takes into consideration the multinational activities whereas the porters' original diamond model takes into account the traditional home-based activities. In addition the porter's diamond framework makes an explicit connection between the geographical and the international industries therefore the industries can easily access raw materials for their company and can also market their products where they can get market for their produce.
Companies gain competitive advantages through getting involved in the innovative processes within their organizations. The approaches of innovation involve use of the latest technology and gaining knowledge on how to carry out the activities of an organization effectively. The innovation processes are manifested through using new product designs, new production processes, having marketing approaches as well as conducting training campaigns within the organizations.
Porter Diamond framework
The Porter Diamond framework was initiated by Michael Porter and is used in determining the competitive advantages of a country or a region. According to porter 1990, it states that the competitive advantage of a country is created and sustained by going through a highly localized process. However, the diamond framework determinants of countries or regions do not necessarily contribute to the success of a country.
Porter analyzed the factors that contributed to the international companies' success and why they were successful than other companies .He observed that success was as a result of implementing the porters favorable national diamonds factors. The extended porter diamond factors of competitive advantages of a nation include; the government, factor conditions, port competition, related and supporting industry as well as the demand conditions (Fuss, and Waverman, 2006).

These interlinked advanced factors for the competitive advantages for countries or regions in the porters' diamond framework are;
Factor conditions; Porters says that the main factors of production are created but not inherited. The specialized factors of production are capital, skilled labor and infrastructure. The general use of the factors and the non-factors such as the raw materials and unskilled labor can be easily made for a company and therefore do not generate sustained competitive advan ...Show more


The prosperity of a nation is created but it's not inherited. The success of a company is determined by its innovativeness and upgrading of its infrastructure. Pressure and challenges are some of the factors that dictate whether a company will have a greater competitive advantage over that of its competitors…
Author : demetris98
Porters Diamond framework essay example
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